Washington, D.C., July 10, 2009–
IFC, a member of the World Bank Group, has provided a $10 million working capital facility to Frontera Agropecuaria del Paraguay (S.A.) to support farming operations in Paraguay.
IFC’s financing will help bring farm land into sustainable production and create opportunities for rural development. Agriculture plays an important role in Paraguayan economy, with more than 42 percent of the population living in rural areas and dependent on agriculture for livelihood. It represents about 25 percent of the GDP, 30 percent of employment, and almost all registered exports.
Frontera Agropecuaria del Paraguay is a member of Desarrollo Agricola del Paraguay Group, the DAP Group, which is an industrial-scale agricultural farming company producing soybeans, corn, and sunflowers in Paraguay.
“IFC’s support will allow the company to finance its working capital needs properly and enhance its competitiveness,” said DAP President Pascual Rubiani. He said the IFC investment will help develop agricultural farming “based on a triple bottom-line model--social inclusion, environmental care, and sustainable economic results.”
Oscar Chemerinski, Director of IFC’s Global Agribusiness Department, said, “IFC financing will play an important countercyclical role during the current financial crisis. IFC will be providing financing to Paraguay’s agriculture farming sector to support local players like the DAP Group that adopts sustainable farming practices. The investment is expected to contribute to rural economic development and increase food supply.”
IFC’s strategy in Paraguay is focused on supporting access to finance for micro, small, and medium enterprises, promoting global trade, and providing advisory services to improve the investment climate. Key sectors include infrastructure, particularly in the areas of transport, electricity, agribusiness development, and financial markets.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
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About the DAP Group
DAP is a business group with significant Paraguayan and international investments. It is setting a new management benchmark for agribusiness in Paraguay by introducing the triple-bottom-line model – economic, social, and environmental – and works in partnership with the civil society and rural neighboring communities.
